Board of Commerce of the State of São Paulo will no longer demand the publication of the financial statements of the large-sized limited liability companies

The Registry of Commerce of the State of São Paulo (“JUCESP”) has issued Deliberation 02/22, suspending the previous deliberation that established the obligation for large-sized limited liability companies to publish their financial statements.

Such provision resulted from a controversial interpretation of Law No. 11,638, dated December 28, 2007, that established large-sized companies, and which referenced only the expressions “bookkeeping” and “preparation” of financial statements, and no reference to the word “publication” (which is expressly mentioned only by the Brazilian Corporations Law, being unequivocally applicable, therefore, only to legal entities incorporated under such corporate type).

Additionally, limited liability companies that are not large-sized companies will no longer be required by JUCESP to submit statements attesting this status.

The suspended rule had given rise to several discussions and lawsuits against JUCESP. Such modification is expected to be well received by the market.

Demarest’s Corporate team is available to provide any further clarifications that may be necessary.